Am I Eligible for the Age Pension? 4 Worked Examples Through Age, Residency and Both Tests
To qualify for the Age Pension you must clear four gates: you must have reached Age Pension age 67, you must be an Australian resident (generally 10 years in total, with at least 5 of those years unbroken), and you must pass both the income test and the assets test. Centrelink runs both tests and pays you under whichever produces the lower rate — so passing one is not enough. The four worked examples below take real-looking people through all four gates so you can see exactly where each one bites.
The four gates, in plain English
Services Australia frames eligibility as a checklist. You must be all of the following at once. Miss any single gate and you get $0, no matter how comfortably you clear the others.
| Gate | The rule | How it can fail you |
|---|---|---|
| 1. Age | You must be 67 or older — the Age Pension age finished rising on 1 July 2023. | One day short of 67 = not yet eligible, full stop. |
| 2. Residency | Generally an Australian resident for 10 years in total, including at least 5 years with no break. | Long stints overseas can break the continuous 5-year period. |
| 3. Income test | Fortnightly income must be under the cut-off ($2,619.80 single). | High deemed income from super/investments tips you over. |
| 4. Assets test | Assets must be under the cut-off ($722,000 single homeowner). | Investment property or a large super balance tips you over. |
Sources: Services Australia — Who can get Age Pension; Residence rules for Age Pension. Rates effective 20 March 2026.
The current numbers you'll be measured against
Centrelink indexes these in March, July and September each year. The figures below took effect 20 March 2026 and run to 19 September 2026.
| Test | Single homeowner | Couple (combined) homeowner |
|---|---|---|
| Income test — full pension up to | $218 / fortnight | $380 / fortnight |
| Income test — cut-off (pension cancels) | $2,619.80 / fortnight | $4,000.80 / fortnight |
| Income taper rate | 50c reduction per $1 over the free area | |
| Assets test — full pension up to | $321,500 | $481,500 |
| Assets test — cut-off (pension cancels) | $722,000 | $1,085,000 |
| Assets taper rate | $3/fortnight reduction per $1,000 over the free area | |
| Max single rate (incl. supplements) | $1,200.90 / fortnight (single) | |
For non-homeowners the assets free area and cut-off are higher (single non-homeowner cut-off: $980,000), because they don't have an exempt family home. Sources: Assets test for Age Pension; Income test for Age Pension.
Worked example 1 — passes age and residency, then fails the assets test
Example · Geoff, 69, retired plumber, single homeowner
Gate 1 — Age: Geoff is 69. ✅ Over 67.
Gate 2 — Residency: Born in Adelaide, never lived overseas. ✅ Easily over 10 years, 5 unbroken.
His assets (home excluded):
- Super in account-based pension: $560,000
- Term deposits and savings: $140,000
- Car + contents: $35,000
- Total assessable assets: $735,000 (his house is exempt)
Gate 4 — Assets test: The single-homeowner cut-off is $722,000. Geoff is at $735,000 — $13,000 over. ❌ The assets test alone cancels his pension, even though he'd comfortably pass the income test once the assets are gone. Geoff gets $0.
The lesson: Geoff cleared three gates but the assets test bit because his wealth sits in countable assets (super in pension phase counts, the home doesn't). Drawing his balance down below $722,000, or non-assessable strategies discussed with an adviser, could open a part pension. At the $722,000 boundary, a part pension would already be very small because the $3/$1,000 taper has nearly run it to zero.
Worked example 2 — passes the assets test, then fails the income test
Example · Lauren, 68, single homeowner with rental income
Gate 1 — Age: 68. ✅
Gate 2 — Residency: Lifelong resident. ✅
Her assets (home excluded): a $300,000 investment unit + $180,000 in super + $20,000 cash = $500,000 assessable. That's under the $722,000 cut-off, so she passes the assets test. ✅
Gate 3 — Income test:
- Net rent from the investment unit: ~$1,900 / fortnight
- Deemed income on $200,000 of financial assets (super + cash): roughly $230 / fortnight under current deeming rates
- Casual bookkeeping work: $600 / fortnight
- Total assessable income ≈ $2,730 / fortnight
The single income cut-off is $2,619.80 / fortnight. Lauren is at ~$2,730 — about $110 over. ❌ The income test cancels her pension. Lauren gets $0, despite passing the assets test with room to spare.
The lesson: Lauren's wealth produces strong cash flow (rent + wages), so the income test is the one that bites. The Work Bonus can discount some of her employment income, which might pull her back under the line — worth checking before assuming she's ineligible.
Which test bites first? Follow the wealth
The single most useful planning question is where your money sits. That usually tells you which test will be the binding one:
| If your wealth is mostly in… | The test that usually bites | Why |
|---|---|---|
| The family home + modest super | Often neither — you likely qualify | The home is an exempt asset and produces no assessable income. |
| A large super / investment balance | Assets test | The whole balance counts as an asset; deemed income may still be modest. |
| Rental property or wages | Income test | Strong cash flow pushes assessable income up fast. |
| Cash and term deposits | Whichever is closer to its cut-off | Cash counts as an asset and generates deemed income. |
Centrelink applies both and pays the lower result, so model both before deciding you're in or out.
Worked example 3 — fails on residency despite age and money
Example · Sofia, 67, returned migrant, single non-homeowner
Gate 1 — Age: 67. ✅
Tests: She rents, has $250,000 in super and no other income to speak of — comfortably under both the income and (non-homeowner) assets cut-offs. ✅✅
Gate 2 — Residency: Sofia migrated to Australia at 30, lived here 7 years, then moved back overseas for 22 years for work, returning permanently at 59. By 67 she has been back for 8 unbroken years.
- Total Australian residence: 7 + 8 = 15 years ✅ (over the 10-year total)
- Longest continuous stretch since returning: 8 years ✅ (over the 5-year unbroken requirement)
Result: Sofia actually qualifies — even with a 22-year gap — because the rule looks at total years plus one unbroken 5-year block, not at whether your residence was uninterrupted overall. Had she returned at 63 instead (only 4 unbroken years by 67), she would fail the continuous-residence gate and have to wait, even though her age and finances are fine.
Time overseas matters in two ways: long absences can stop you ever clocking up the unbroken 5 years, and (separately) being outside Australia when you claim can affect how the claim is processed. Some people are exempt from the 10-year rule — for example, those who arrived as refugees. See Services Australia — Residence descriptions.
Worked example 4 — passes all four gates and receives a part pension
Example · Raj and Priya, both 70, couple homeowners
Gates 1 & 2 — Age & Residency: Both 70, both lifelong residents. ✅✅
Assets (home excluded): combined super $420,000 + savings $90,000 + car/contents $40,000 = $550,000 assessable. The couple-homeowner cut-off is $1,085,000 — well under. ✅
Assets-test rate calc: They're $550,000 − $481,500 (couple free area) = $68,500 over the free area. The taper is $3/fortnight per $1,000, so the reduction ≈ ($68,500 ÷ 1,000) × $3 = ~$205.50 / fortnight off the combined maximum.
Income: deemed income on their financial assets ≈ $250 / fortnight combined — under the $380 couple free area, so the income test reduces nothing. ✅
Result: Centrelink compares the two tests and pays the lower-rate result — here the assets test reduces them by ~$205.50/fortnight, while the income test reduces $0. They receive a part pension (combined maximum minus ~$205.50). Both gates passed; the assets test simply scales the amount, it doesn't disqualify them.
How to check your own eligibility
- Confirm age and residency first — these are pass/fail. If you're under 67 or short of the 10-year / 5-year unbroken residency, the tests are irrelevant until you clear them.
- Add up your assessable assets (everything except the family home) and compare to your cut-off.
- Add up your assessable income, including deemed income on financial assets, and compare to your cut-off.
- Run both tests — you'll be paid under the one that gives the lower amount.
- Use the official estimator via the Services Australia Payment and Service Finder, or speak to a Financial Information Service officer (free).
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Frequently asked questions
What age can I get the Age Pension in Australia?
The Age Pension age is 67 for everyone born on or after 1 January 1957. The qualifying age finished rising to 67 on 1 July 2023, so there are no further increases scheduled. You must have reached 67 before you can be paid, regardless of how well you pass the income and assets tests.
What is the residency requirement for the Age Pension?
You generally need to have been an Australian resident for at least 10 years in total, and for at least 5 of those years there must be no break in your residence (one unbroken 5-year block). Some people, such as those who arrived as refugees, are exempt from the 10-year rule. Long periods overseas can prevent you from building the unbroken 5-year period.
Can I fail the assets test but still pass the income test?
Yes — and it still means $0. Centrelink applies both tests and pays you under whichever gives the lower rate. If your assets are over the cut-off ($722,000 for a single homeowner from 20 March 2026) your pension cancels even if your income is low, because the failing test wins.
How much can a single homeowner have before the Age Pension cuts out?
From 20 March 2026, a single homeowner's pension cancels once assessable assets exceed $722,000, or once fortnightly assessable income exceeds $2,619.80. Assets up to $321,500 (or income up to $218 a fortnight) still allow the full single rate of $1,200.90 a fortnight; amounts in between produce a part pension.
Which test reduces my pension — the income test or the assets test?
Whichever produces the lower payment. As a rule of thumb, large super or investment balances are usually limited by the assets test, while rental income or wages are usually limited by the income test. Cash sits in both tests because it counts as an asset and is deemed to earn income.
Does the family home count toward the assets test?
No. Your principal home is an exempt asset. That's why homeowners have a lower assets cut-off ($722,000 single) than non-homeowners ($980,000 single) — the higher non-homeowner threshold compensates for not owning an exempt home.
General information, not personal Australia tax/legal advice. Verify with a qualified professional.
Sources: Services Australia — Who can get Age Pension, Residence rules, Assets test, Income test. Figures effective 20 March 2026.